6.1 EDSR 07-21-2014 - Laserfiche WebLink

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hi Request for Action River To Item Number EDA Finance Committee 2.4 Agenda Section Meeting Date Prepared by General Business November 5,2013 Brian Beeman,Director of Economic Development Item Description Reviewed by Fourth Micro Loan Policy Jeremy Barnhart,Deputy Director,CODD Reviewed by Action Requested Consider terms for a fourth Micro Loan application policy to fill any gaps the other Micro Loan don't cover and make recommendation to the EDA. Background/Discussion The EDA has directed staff to work with the Finance Committee to draft a policy for a 4'1'Microloan.The EDA currently has approximately$403,048.33 left over from State DEED monies. DEED requires the city to use these funds separately from existing programs. It was noted a separate program could be created but be based similar to the existing microloan programs.When contacted, DEED requested first,that the city draft a policy then send it to DEED for review before the EDA approves the final draft The EDA discussed this matter at their July 15,2013 regular meeting.The following items were determined to be important to the EDA as guidelines for the Finance Committee in drafting a new policy. EDA Guidelines/Comments: • Business Retention/Relocation • Small Business Start-Ups Business Improvement Projects • Flexibility-Be open to more types of businesses • Consider non-profits • Current programs are too restrictive,open up to service related businesses,or larger type businesses. • If a forgivable loan is allowed and considered,ensure it is staggered and have more requirements over a longer time period with a portion of the loan to be forgiven each year. • Make it available to any small business that has a plan to expand regardless of their product. (i.e., PSB is bringing in more jobs than high tech industrial businesses. It would be nice to be able to give them a parking lot). • Offer to more types of businesses but as a revolving loan program rather than a one-time use. • Like idea of having it as an ongoing program. • See what Finance Committee creates that would be unique. • Rates aren't competitive&too much red tape • Make it as user friendly and flexible as possible • Consider reviewing policies from other communities for new,exciting ideas. Financial Impact o N i A E s i NATUREI